What's A Good Price For An Accountant?

ladymunter

I'm a registered sole-trader (I'm an event promoter) and I've been quoted £300 a month for an accountant's services.
This fee includes a subscription to Xero, accounting software which he demonstrated for me.
Now, the software looks exceedingly simple and intuitive to use, even for someone like me who doesn't have a head for figures.
He said his fee also includes training for the software but I honestly don't think it needs that much training, as I'm pretty adept with IT programmes in general.
Also, the highest level of subscription is only £25/M, and I can't see what I'd need an accountant for if I signed up for it, to be honest.
What's the consensus? Is this guy charging too much? Would I be better going it alone?
Thanks.

nonnatus

£300 A MONTH!!!!


For sole trader accounts!!??


Get yourself a copy of QuickBooks or a similar computer accountancy package for approx. £200.


Follow the instructions.


You may need to pass your records to an Accountant at the end of each year to finalize your tax return but that should only cost £2-300.


Send the other 10 monthly £300 payments that you've now saved to me!!

WestonDave

Had to google to find out what Xero is - entirely agree with the above - he's thinking more about his business interests than yours. Lots of accountants have resale agreements with software (partly because ensuring clients are using something decent helps cut time and effort sorting it out at year end) but I'd keep looking if I were you.

somethingcorporate

What's your income? That sounds high to me.

Croatoan

Much the same boat here. I've been recommended a guy at around £90 a month, but then I know a few people who just pay a one-off £150/200 just to get the books and tax submitted at the at the end of the year. I'm not too sure what more I'll get from the more expensive option (other than ongoing advice which I'm not sure I need being that I'm on a regular wage through the agency/Ltd company status).
It all seems very confusing.

ceewash

I am a sole trader and pay £68 per month. That pays for staff wages (pay slips) and end of year accounts. I don't do any of the online stuff, just keep a cash book and receipts and hand them over at year end.

phill99

£300 a month? Struts. He's taking the mick!

I pay £300 a year + vat to get my books done and my tax return done.

I just give him my business bank statements, copies of all invoices and all my receipts. He does all the rest.

Doing the accounts for a sole trader is very straightforward. Why do you need to buy in to exprnsive and unnecessary software?

Get some more quotes.

Laurajo_2

:eek:£3,600 a year?!:eek:

That's ridiculous....especially as you'll be doing the bulk of the bookkeeping work and the year end will amount to a few adjustments. Trust me, firms do audits for less than that!

Most accountants will offer a fixed fee service for simple sole trader accounts and tax return in the range of £200 to £500 which will include the odd telephone call/email query etc. Don't get suckered in by all this talk of bookkeeping software - if you're in any way computer savvy, an excel spreadsheet will suffice.

daffydukky

ladymunter wrote: »

I'm a registered sole-trader (I'm an event promoter) and I've been quoted £300 a month for an accountant's services.
This fee includes a subscription to Xero, accounting software which he demonstrated for me.
Now, the software looks exceedingly simple and intuitive to use, even for someone like me who doesn't have a head for figures.
He said his fee also includes training for the software but I honestly don't think it needs that much training, as I'm pretty adept with IT programmes in general.
Also, the highest level of subscription is only £25/M, and I can't see what I'd need an accountant for if I signed up for it, to be honest.
What's the consensus? Is this guy charging too much? Would I be better going it alone?
Thanks.

Depends what you want the accountant to do in truth (my background - chartered accountant 20 years so I speak with some experience on what is involved)


If you want him to complete books and records, log all transactions, complete accounts, submit tax returns, register and file VAT returns, payroll processing etc. it is hard to be sure but it still looks high.


If you are after software to record and maintain yourself and your accounts and business are not complex (small turnover, minimal staff, Non VAT etc.) then you are probably best to simply keep a cashbook on excel rather than buy software then if you record all transactions made and hand details in an organised file just after the end of year (invoices raised and received, bank statements, other related paperwork etc.) and request they are completed annually (accounts and tax returns) for an agreed fee.


There is no hard and fast rule or rate but I would expect c£400 for simple accounts, +c£200 for tax return for something non complex, perhaps cheaper if you go for entry level services but I wouldn't recommend.


I hope this helps